A supply agreement allows a business to ensure a constant and reliable supply of raw materials, goods or other material it needs from a supplier. This type of agreement allows both parties to better plan their respective activities over a certain period of time.

The following template provides the legal and financial framework of such a transaction, which can be used with two other documents, namely, the purchase order issued by a potential customer (template G02320) and a delivery order issued by the supplier (template G02330).

We recommend the use of this supply agreement template to define the relationship between a client and supplier who transact on a regular basis. The agreement may cover the supply of raw materials, goods or any other material. This template helps to qualitatively and quantitatively define the goods to be supplied, but also sets out the details concerning the transportation and delivery of the purchased goods. In this type of contract, the obligations of the parties can be performed "as needed" or on a continuous basis.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Basic Supply
0.01.04 Breach
0.01.05 Best Effort
0.01.06 Carrying Charges (optionnal clause)
0.01.07 Change in Control
0.01.08 Confidential Information
0.01.09 Delivery Note
0.01.10 Delivery Schedule
0.01.11 Encumber or Encumbrance
0.01.12 Event of Default
0.01.13 Firm Order
0.01.14 Firm Price
0.01.15 Firm Price Order
0.01.16 Force Majeure
0.01.17 Fundamental Provisions
0.01.18 Goods
0.01.19 Intellectual Property
0.01.20 Law
0.01.21 Legal Representatives
0.01.22 Open Order
0.01.23 Option
0.01.24 PARTY
0.01.25 Person
0.01.26 Prime Rate
0.01.27 Purchase Order
0.01.28 Related Person
0.01.29 Request for Proposals
0.01.30 Specifications
0.01.31 Stand-by Fee (optionnal clause)
0.01.32 Subsidiary
0.01.33 Surplus Supply
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Basic Supply
1.02 Surplus Supply
1.03 Conditions
1.03.01 Required by CLIENT
1.03.02 Required by SUPPLIER
1.03.03 Choice
2.00 CONSIDERATION
2.01 Supply
2.01.01 Basic
2.01.02 Firm Price Order
2.01.03 Carrying Charges
2.01.04 Stand-by Fees
2.02 Surplus
3.00 TERMS OF PAYMENT
3.01 Exigibility
3.02 Location
3.03 Payment Discount
3.04 Interest
3.05 Payment upon Delivery
3.06 Loss of Term
4.00 SECURITY
4.01 In favour of CLIENT
4.02 In favour of SUPPLIER
4.03 Movable Hypothec without Delivery
4.04 Suretyship
4.05 Right of Ownership
4.06 Performance Bond
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE CLIENT
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Delivery
6.07 Health and Safety
7.00 REPRESENTATIONS AND WARRANTIES OF THE SUPPLIER
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Operating Permit
7.07 Resources
7.08 Pricing Policy
7.09 Encumbrance
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE CLIENT
9.01 Project Manager
9.02 Collaboration
9.03 Purchase Order
9.04 Exclusivity
9.05 Delivery Schedule
9.05.01 Notice
9.05.02 Acceptance
9.06 Transportation
9.07 Delivery
9.07.01 Acceptanc
9.07.02 Déchargement
9.07.03 Weight Control
9.08 Inspection
9.09 Resale
9.10 Liability
10.00 DUTIES AND OBLIGATIONS OF THE SUPLIER
10.01 Purchase Order
10.02 Delivery Note
10.03 Orders
10.03.01 Quantity
10.03.02 Specifications
10.04 Delivery
10.04.01 Frequency
10.04.02 Delivery Schedule
10.05 Production
10.05.01 Best Effort
10.05.02 Interruption
10.05.03 Acknowledgement
10.05.04 Compliance
10.06 Inspection
10.07 Transportation
10.07.01 Place of Delivery
10.07.02 Compliance with Legislation
10.07.03 Transfer of Risks
10.08 Weight Control
10.08.01 Weighing
10.08.02 Verification
10.08.03 Price Adjustment
10.09 Quality
10.09.01 Compliance with Quality Standards
10.09.02 Refusal of Delivery
10.09.03 Quality Control
10.10 Transfer of Property
10.11 Loss
10.12 Warranty
10.12.01 Scope
10.12.02 Performance
10.13 Property Right Warranty
10.14 Insurance
10.14.01 Insured Risks
10.14.02 Amount of Coverage
10.14.03 Issuer
10.14.04 Co-insured
10.14.05 No Limitation
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Technological Changes
11.07.01 Definition
11.07.02 Modification du Contrat
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Without Notice
13.03 Prior Notice
13.04 Change in Control
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT OF A RESOLUTION OF THE CLIENT
SCHEDULE B – EXCERPT OF A RESOLUTION OF THE SUPPLIER
SCHEDULE 0.01.03 – BASIC SUPPLY
SCHEDULE 0.01.10- DELIVERY SCHEDULE
SCHEDULE 0.01.30 – SPECIFICATIONS
SCHEDULE 4.03 – MOVABLE HYPOTHEC WITHOUT DELIVERY
SCHEDULE 4.04– SURETYSHIP
SCHEDULE 10.12 - WARRANTY